This section limits when certain businesses, governmental entities, and other owners may sell, transfer, or release nonrepairable or salvage vehicles, and requires some sellers to turn in the title and apply for the correct ownership document before selling.
Sec. 501.095. SALE, TRANSFER, OR RELEASE. (a) If the department has not issued a nonrepairable vehicle title, nonrepairable record of title, salvage vehicle title, or salvage record of title for the motor vehicle and a comparable out-of-state ownership document for the motor vehicle has not been issued by another state or jurisdiction, a business or governmental entity described by Subdivisions (1)-(3) may sell, transfer, or release a nonrepairable motor vehicle or salvage motor vehicle only to a person who is: (1) a licensed salvage vehicle dealer, a used automotive parts recycler under Chapter 2309, Occupations Code, or a metal recycler under Chapter 2302, Occupations Code; (2) an insurance company that has paid a claim on the nonrepairable or salvage motor vehicle; or (3) a governmental entity. (b) A person, other than a salvage vehicle dealer, a used automotive parts recycler, or an insurance company licensed to do business in this state, who acquired ownership of a nonrepairable or salvage motor vehicle that has not been issued a nonrepairable vehicle title, nonrepairable record of title, salvage vehicle title, salvage record of title, or a comparable ownership document issued by another state or jurisdiction shall, before selling the motor vehicle, surrender the properly assigned title for the motor vehicle to the department and apply to the department for the appropriate ownership document. (c) If the department has issued a nonrepairable vehicle title or salvage vehicle title for the motor vehicle or another state or jurisdiction has issued a comparable out-of-state ownership document for the motor vehicle, a person may sell, transfer, or release a nonrepairable motor vehicle or salvage motor vehicle to any person. Added by Acts 1997, 75th Leg., ch. 165, Sec. 30.43(a), eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 1421, Sec. 10, eff. June 1, 2003. Renumbered from Transportation Code Sec. 501.0916 and amended by Acts 2003, 78th Leg., ch. 1325, Sec. 17.02, eff. Sept. 1, 2003. Amended by: Acts 2009, 81st Leg., R.S., Ch. 783 (S.B. 1095), Sec. 10, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 933 (H.B. 3097), Sec. 4.10, eff. September 1, 2009. Acts 2011, 82nd Leg., R.S., Ch. 1296 (H.B. 2357), Sec. 40, eff. January 1, 2012. Acts 2011, 82nd Leg., R.S., Ch. 1296 (H.B. 2357), Sec. 41, eff. January 1, 2012. Acts 2013, 83rd Leg., R.S., Ch. 1135 (H.B. 2741), Sec. 56, eff. September 1, 2013.